US judge blocks Kroger and Albertsons $25 billion megamerger
Kroger’s $25 billion acquisition of rival Albertsons has officially been blocked, nearly two years after the grocery-store chains announced their megamerger. The grocers had agreed to sell a combined 579 stores to C&S, the world’s largest grocery wholesaler, in hopes of securing approval for their merger.
But after a three-week trial, a US district judge ruled that the deal would still raise grocery prices and curb leverage for unionized workers since both companies directly compete. The ruling, which likely puts the final nail in the deal’s coffin, marks another victory for FTC Chair Lina Khan, who has blocked numerous mergers under the Biden Administration.
Kroger’s stock jumped more than 5% following the decision, while Albertsons’ stock fell by about 3%.
But after a three-week trial, a US district judge ruled that the deal would still raise grocery prices and curb leverage for unionized workers since both companies directly compete. The ruling, which likely puts the final nail in the deal’s coffin, marks another victory for FTC Chair Lina Khan, who has blocked numerous mergers under the Biden Administration.
Kroger’s stock jumped more than 5% following the decision, while Albertsons’ stock fell by about 3%.
